Gold rush: Record high

By CHRIS HUBBUCH

Turns jewelry boxes into treasure chests

Nicole Miller waited in line Friday at River City Gold & Silver Exchange with a chest of jewelry she inherited and hoped would be pay dirt.

She had necklaces, anniversary pins, old broaches and “some earrings that are questionable,” as well as a plastic bag of belt buckles and old watches. Justin Cain of River City Gold and Silver Exchange appraises a piece of jewelry brought in by a customer. Erik Daily

Miller, 31, said there wasn’t really anything she wanted and would rather have money to set aside for her two young children’s education.

With the price of gold at an all-time high and silver at its highest since 1980, people are raiding jewelry boxes and cashing in coin collections in a modern-day gold rush.

At River City, the line was about nine-deep Friday morning as three buyers panned through trinkets for 14 karat nuggets.

Gold hit a record $1,009 an ounce Friday on the New York Mercantile Exchange, breaking the $1,000 mark for the second time this week.

Prices have surged nearly 20 percent this year, fueled by a tumbling dollar, record crude oil prices and concern over a faltering economy. Experts say the metal could go even higher if the Federal Reserve cuts interest rates again next week.

So far, rising prices haven’t produced a noticeable crime wave, said La Crosse Police Officer Drew Gavrilos.

Nor has the market surge hurt jewelry sales, said Lynn McIlvaine, owner of Crescent Jewelers, where wedding and engagement rings account for the bulk of sales.

River City owner Al Louis, who has been in the jewelry trade since before he was in high school, said he’s seeing more traffic than he has since 1980, when silver spiked to nearly $50 an ounce and gold was fetching $850. Adjusted for inflation, that’s twice what gold is selling for today.

Back then, the line stretched around the block.

Louis, 47, said his profit margin on precious metals is only about 1½ percent, so volume is important, especially to offset refining costs. He has advertised heavily, offering money for coins and jewelry. His biggest payout so far: about $125,000.

And the more volume he does, the better his chances of finding something truly rare.
The coin counter was whirring and clacking Friday. Nothing collectible in there — just the sound of money.

Louis said one person cashed in coins worth $14,000.

Helen Osley brought in her husband’s coin collection and some jewelry — “a little bit of everything.”

Justin Cain opened roll after roll of pre-1965 dimes and quarters and sifted through piles of silver dollars and 50-cent pieces. The coins have no numismatic value, but with silver trading at more than $20 an ounce, Osley got $1.20 per dime and $3 a quarter.

Cain sorted jewelry into 14 karat, 10 karat, and sterling. “That stuff you can have back,” he said handing Osley a plastic baggie of gold-plated chains.

Among the pins, rings and chains was a molar, also her husband’s.

“Dental gold,” Cain said. “We get a lot of that. It really pays.”

Osley, 79, said she planned to use the money to pay her property taxes.

Nicole Miller wasn’t doing as well. “A lot of costume jewelry so far,” she said.
In the end, she got $115.

“It’s just nice to know this stuff’s worth keeping,” she said, patting the jewelry box.